I have been doing some reading/researching on the issue of a proposed extension/increase of the current $8000 1st time home buyer tax credit bill issued by Sen. Isakson (R) Georgia.
After being first introduced earlier this summer, the bill seemed to to fade away as other bills took over importance. The bill also had co-sponsors from both political parties including Chris Dodd (D).
The bill sounds like it has been reintroduced with even more support from both sides of the isle and has several changes included that will help even more people their current home buying situation.
These changes include:
1. Removal of the income cap that had been limited to $75k ($150k jointly).
2. Opens up the program to include ALL buyers, not just first time home buyers.
3. Most importantly, changes the tax credit from $8000 to $15000!
4. Would be able to spread tax credit over a two year period.
While I did like the current tax credit program, it did not do as much as I had hoped it would. There were a couple of reasons for that. One reason was that our market the last four or five years was so active that most people had already got into the market for the first time. With the rule that you had to have not owned a home for the last three years, it didn't affect as many people as it could have in other markets. The other reason is that while the tax credit was great, you still had to have lenders actually lend you the money on homes that first time home buyers could afford. In our market, that included a large percentage of Condos. Lenders have been to reluctant to loan money on condos without large down payments, so that hurt a lot of people also.
I am hopefull that this new bill will be passed into law and open up opportunities for more people to get the market moving again as it is a giant part of our economic recovery!